Regulatory Alerts2026-06-01
Added · Updated
Latvijas Banka's View on LFNA Proposals Submitted to the Bureaucracy Reduction Action Group on May 5, 2026
Latvijas Banka rejects proposals to set the countercyclical capital buffer (CCyB) at 0% during normal economic cycles, to convert the Pillar 2 Requirement (P2R) into a non-binding reserve, and to remove branch-opening obligations, citing financial stability risks and existing regulatory frameworks. The regulator supports principles of single-source data submission, risk-based approaches in anti-money laundering, and the removal of advertising restrictions for consumer loans, while urging the industry to provide specific details for further action. Additionally, Latvijas Banka opposes the elimination of bank-specific taxes and fees, noting that achieving maximum supervisory efficiency and lowest costs simultaneously is not feasible without compromising quality.